How much will the handsets costs in the UK for a term less than 12 months? As much as I love the idea of no contracts, and short term contracts, How will it be profitable for any telecom company? BB, Apple, HTC, won’t be lowering their handset prices, which means that the giants Phone companies will not be able to offer a 179$ Iphone, because they won’t be able to afford it.

It sucks, but it costs the company money to create an account for a new client, it costs them money to buy handsets.

As a consumer, I hate the fact that there are 3 yr contracts, but if I can get a good deal on a handset, it’s cool…. And mostly, after 2 years, you get an upgrade…. Which means, yes, you are in a contract, but something new every other year seems ok.

IMHO.

D-

While I agree with your arguments, there are always workarounds, such as non-subsidized hardware. Customers deserve the right to have the choice of the same good offer, with or without term attached. If they want say an iPhone with term, they get subsidized pricing or they can pay the hardware cost outright and get the same offer; term shouldn’t be the deciding factor, carriers make the same money off the plans. Carriers don’t, nor have they ever made profit off hardware sales, the money is - and always will be - in the plan and overages that consumers incur.